how do you put a monetary value on the safety of travel.
Please answer questions 1 (15 points) , 3 (15 points) , 4 (20 points) and 5 (30 points) from the case “Developing financial insights: Using A Future Value (FV) and A Present Value (PV) Approach”. No need to use the tables at the end of the case if you are comfortable with Excel Functions.
Submit only an Excel file. Work on each question in a separate worksheet of the same Excel file. Name the sheets Q1, Q2, etc. Clearly indicate where you have the answer to each part. Show calculations. All values in the file should be linked to information from the question.
Some Hints:
Question 3. Present value of savings for the 3 cases should be calculated for this question.
Question 4. Find the present value of additional sales and compare it to the equipment cost. For the taxable entity, make sure you add the depreciation to calculate free-cash flow.
Question 5. The first part is calculating the NPV, which will turn out to be negative. For the additional cash flow problem, think of the question as an annuity. The value found from the annuity is going to be after-tax cash flow, which can then be used to find the before tax cash flow, which is more important to find. For the last question, you have to think of something that is not easily quantifiable (i.e., hard to calculate the monetary value of it and hard to include in NPV calculations), but can make even negative NPV projects acceptable to companies (this may seem contrary to what you have learned so far). One example is safety of travel (in the sense of not coming in contact with anyone else from outside the company. This is more true at times of pandemic.). The question is how do you put a monetary value on the safety of travel. It is expected that the submitted answer will not include this particular example of non-monetary considerations since this is given out.